Vending

J&J Snack Foods boosts Q3 2022 sales, earnings slide

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August 3, 2022

J&J Snack Foods Corp. lifted its Q3 2022 sales over the prior year, surpassing analyst expectations, but suffered an earnings decline, according to an earnings report. Highlights include:

• Net sales increased 17.2% from $324.3 million in Q3 2021 to $380.2 million in the quarter ending June 26, 2022, and by 16.4%, compared of Q3 2019. Sales were driven by growth in core products including pretzels, churros, frozen novelties and frozen beverages.
• Net earnings fell from $28.9 million to $15.5 million in the comparative quarters.
• Diluted earnings per share fell from $1.51 to 81 cents, while basic earnings per share fell from $1.52 to 81 cents.
• Adjusted diluted earnings per share fell from $1.53 to 93 cents.
• Foodservice sales exceeded Q3 2021 by 16% and by 17.8% versus Q3 2019.
• Retail segment sales exceeded Q3 2021 by 13.3%, and by 46.1% compared to Q3 2019.
• Frozen beverage segment sales beat Q3 2021 sales by 23.5% and were flat versus Q3 2019.

Shares traded Tuesday at $134.72 against a 52-week range of $117.45-$165.86.

The $380.2 million in quarterly revenue beat analyst expectations by $27.81 million while the non-GAAP EPS of 93 cents missed expectations by 7 cents, according to Seeking Alpha.

"J & J Snack Foods delivered strong results in fiscal third quarter, including record quarterly sales and significant improvements in gross margin at 28.7%," Dan Fachner, president and CEO said in the press release. "This performance reflects a number of positive trends across all three of our business segments, including strong demand for our higher-margin core products, continued strength in our key sales channels and expanding penetration of our products with new and existing customers."